### FLOW GETS BEHIND THE NOK The...........>

EURO-NOK: ### FLOW GETS BEHIND THE NOK

The trifecta of a run of relatively decent domestic data releases, a lower CPI

target and hawkish rhetoric has many earmarking a September rate hike for the

Norges Bank.

- EURNOK has broken through the 200-DMA during the recent sell off, opening up a

move to the November 2017 low of 9.4296.

- Last week's flows were supportive, with hedge funds and real money accounts

seemingly getting behind the NOK.

- This week's political developments threatened the recent bout of NOK strength,

however, the resignation of the Justice Minister seems to have alleviated the

risk of a confidence vote for the time being.

- Any substantial hawkish rhetoric from the ECB could hinder the move, while it

is worth noting that the Norges Bank's rate path projections haven't been known

for their accuracy in recent times.